Building owners see the new offerings as the front door to their properties,and are prepared to include higher incentives into the rental contracts as added attraction. This is evidenced by the success of The Bentley at 27 O’Connell Street and Neil Perry’s Rockpool Bar&Grill at 66 Hunter Street.
The Speakeasy Group has leased a restaurant and bar space at Beneficial House,285 George Street,part of Brookfield Place,Sydneysupplied
The pandemic had an enormous impact on the food and beverage industry,in particular the Sydney CBD market,but there is evidence of an accelerated momentum in the city,despite the still half-empty office towers.
One of the latest deals in Sydney’s Wynyard Lane is a lease by the Speakeasy Group’s for a “moody speakeasy bar” and new restaurant concept at Brookfield Place Sydney.
The group behind the Viking-inspired Mjølner and Nick&Nora’s will re-establish its former Darlinghurst speakeasy cocktail bar,Eau-de-Vie,and also introduce The Sanderson,a brand-new restaurant concept.
Under the plan,the Sanderson will lease the first floor of Beneficial House off Wynyard Lane,while the basement will welcome the return of Eau-de-Vie,which during its tenure at its Darlinghurst location,was crowned the world’s best new cocktail bar at the prestigious Spirited Awards in the United States.
Owned and operated by Sven Almenning and Greg Sanderson,The Speakeasy Group operates seven bars and restaurants across Sydney and Melbourne.
“The Speakeasy Group’s unique bar and restaurant offering will bring an excellent addition to our food and beverage mix at Brookfield Place Sydney and will contribute significantly to activating the precinct’s nightlife,” Danny Poljak,executive vice president and co-head for Brookfield Properties Australia,said.
The associate director of Knight Frank retail leasing,Adam Tyler,said the best operators in the market have been able to ride the storm of lockdowns and as a result are in a position to capitalise on higher vacancy rates and bigger tenant incentives.
He said pre-COVID-19,food and beverage tenant incentives were typically 20 per cent of the rent,but post the pandemic they have moved close to 30 per cent or even higher.
Speakeasy Group lease at 285 George Street,Sydneysupplied
“The best landlords are willing to take a view on the incentives as they are securing top-quality,award-winning operators for their assets,” Tyler said.
In the last 12 months,Tyler has leased new digs for the popular Japanese Toko restaurant at 275 George Street Sydney;the Dean&Nancy bar on level 22 of 280 George Street,as part of the TOGA and Far East group’s A by Adina hotel;the Santa Catarina at 156 Clarence Street and Jolene’s whiskey bar at 73 York Street in the property now owned by Justin Hemmes’ Merivale Group.
Tyler said that the best restaurants and small bars are now reporting at pre-pandemic numbers with the spend per head also up.
However,smaller cafes and grab-and-go-style operators are still challenged due to the corporate workforce not returning to the traditional 5-day week.
The partner and head of retail leasing of Knight Frank,Alex Alamsyah said another new entrant is the Etymon Group,part of the Aqualand Group,which plans to open its Charles Grand Brasserie at the Charles Plaza in 66 King Street and a sibling,basement lounge Tiva.
“This precinct around King and York Streets will be on fire as Justin Hemmes has also recently splashed around $200 million on a cluster of strata properties near the intersection,” Alamsyah said.
The director and head of retail leasing Australia at CBRE,Leif Olson said retail tenants may generate1 per cent of the income,“but it is 99 per cent of the impact”.
“Adding quality food and beverage to any office building gives amenity to the occupants and if done right,makes them more likely to renew at lease expiry,” Olson said.
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